News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • ECB President Lagarde: - An ambitious and coordinated fiscal stance is critical - Fiscal measures should be targeted and temporary - EU aid package must become operational without delay #ECB $EUR
  • ECB President Lagarde: - Risks surrounding Euro-area outlook remain tilted to the downside, but less pronounced - Underlying price pressures are expected to remain subdued - Inflation is likely to increase in the coming months as pandemic's impact fades #ECB $EUR
  • ECB's Lagarde - Downside risks to outlook are less pronounced $EUR
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/UqQKBMNuIA
  • ECB President Lagarde: - Resurgence of pandemic has likely led to decline in activity in Q4 2020 - Will also weigh on activity in Q1 2021 - Fiscal policies are supporting households and firms, but consumers are staying cautious #ECB $EUR
  • ECB's Lagarde says will monitor developments in the exchange rate Slight change in tone from previously stating they will "very carefully" monitor FX movements https://t.co/0E6ijpEGM8
  • ECB President Lagarde: - Euro-area economy contracted in the fourth quarter - Uncertainty remains high - ECB is monitoring exchange rate for its impact on inflation - Ready to use all instruments as needed #ECB $EUR
  • ECB President Lagarde: - Inflation remains very low in the context of weak demand and significant slack - Data confirms pronounced near-term impact on economy and protracted weakness in inflation - Ample degree of monetary stimulus is essential #ECB $EUR
  • 🇺🇸 Philadelphia Fed Manufacturing Index (JAN) Actual: 26.5 Expected: 12 Previous: 11.1 https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇨🇦 New Housing Price Index YoY (DEC) Actual: 4.6% Previous: 4.6% https://www.dailyfx.com/economic-calendar#2021-01-21
Volatility Expansion Looming In USD/JPY?

Volatility Expansion Looming In USD/JPY?

Kristian Kerr, Sr. Currency Strategist

Talking Points

  • Narrow range day points to volatility expansion
  • NFP a clear catalyst for USD/JPY

Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.

Despite some turbulent action elsewhere in the FX markets, USD/JPY has gone virtually nowhere as the range this week in the pair is a little over 100 pips. Yesterday, in fact, was the narrowest range in almost a month. Such a sharp contraction in near-term volatility is usually a reliable signal and precursor to a meaningful directional move given the inherent mean reverting tendency of volatility. US employment data should be a clear catalyst for volatility expansion. Our game plan after the data will be to watch how the exchange rate reacts around this week’s range extremes. A convincing break of 116.86 will be seen as a negative and should open the way for a more serious decline while traction over 118.00 will be taken as a bullish development.

To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.

USD/JPY Daily Chart: February 6, 2015

Volatility Expansion Looming In USD/JPY?

Charts Created using Marketscope – Prepared by Kristian Kerr

Key Event Risk in the Week Ahead:

Volatility Expansion Looming In USD/JPY?

LEVELS TO WATCH

Resistance: 117.98 (WTD high ), 118.90 (trendline)

Support: 116.86 (WTD low), 116.10 (trendline)

Strategy: Sell USD/JPY

Entry: Sell USD/JPY if spot closes the day below 116.86

Stop: Daily close above 117.40

Target: 115.00

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter at@KKerrFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES